US Dollar Up On Jobs Report

Posted January 08, 2011

Euro down on debt concerns. US dollar continues rally.


US Dollar

The US dollar was up during the Friday trading session. Against the euro, the US dollar was moving towards the largest gains the currency has made against the euro since August. The euro continues to be unattractive to investors due to the continued debt concerns throughout the euro zone. Improvements in the US jobs market continue to make the US dollar a better investment for traders. The US jobless rate dropped to 9.4 percent due to people leaving the workforce. This was a surprising drop. 

The US dollar index moved the US dollar from 80.802 as of the end of North American trading on Thursday to 81.020 as of the end of the trading session on Friday. It was able to climb as high as 81.111 during the trading session, before losing some ground. For the first week of 2011, the US dollar index showed the US dollar up 2.5 percent. This is the best week of gains for the currency since September.


The euro continues to falter even as positive economic data is pushed to the surface. The US dollar, which is considered a safer option, with lower risk, continues to climb against the euro due in part to the concerns about the debt in various euro zone countries. 

Against the euro, the US dollar did well. It moved from US $1.3016 at the end of the Thursday trading session in North American trading to US $1.2931 by the end of the Friday session. For the year thus far, the euro fell 3.4 percent. 


The US dollar did not improve against the Japanese yen during the Friday currency session. The yen to dollar movements tend to be related to the movements in Treasury yields in the United States. These turned lower on the positive data out of the euro zone. 

Against the yen, the US dollar moved down. It moved from Y 83.36 at the end of the trading session in North America on Thursday to Y 83.04 by the end of the session on Friday. The dollar still remained up for the year, during this first session, by 2.4 percent. 

UK Pound

Against the UK pound, the US dollar also lost some ground. The UK pound moved to US $1.5560 for the day. That is a gain of 0.5 percent for the day. For the year thus far, the UK pound is down 0.4 percent against the US dollar.